Trevor Sargent (Dublin North, Green Party)

Ba mhaith liom buíochas a ghabháil leis na Seanadóirí as an cheist seo a ardú. I am pleased to have the opportunity to outline the current position regarding the farm waste management scheme. There is particular reference to Waterford but Senator John Paul Phelan will be glad to hear that the reply also refers to south Kilkenny.

A revised and greatly improved farm waste management scheme was introduced by my Department in March 2006 to assist farmers to meet the additional requirements of the nitrates directive. The amendments to the scheme included an increase in the standard grant rate from the previous 40% to 60%, with 70% being available in the zone C counties of Cavan, Donegal, Leitrim and Monaghan. The new scheme also provided for an increase in the maximum eligible investment ceiling from €75,000 to €120,000 and removed any minimum income requirements from farming so that all small farmers could participate in the scheme.

It is acknowledged that Ireland was in a very difficult position prior to the introduction of the revised scheme in 2006 because Ireland had been found to be in breach of the terms of the nitrates directive in 2004 by virtue of a judgment of the European Court of Justice. Continued failure to implement this directive to the satisfaction of the Commission would have had serious implications for Ireland, including the threat of substantial daily fines and the undermining of EU funding for rural development schemes and the single farm payment. The annual EU funding to Ireland under both headings amounts to about €1.6 billion.

The immense success of the scheme is demonstrated by the 48,580 applications which were received from Irish farmers by the closing date of the end of December 2006, of which more than 30,000 were received during the final month for receipt of applications. Almost 43,000 approvals to commence work issued to farmers under the scheme prior to the end of 2008 deadline for completion of work. These figures are virtually unprecedented within the context of on-farm investment schemes in Ireland. This could explain why the Department was surprised at the extent of applications.

The financial commitment of this Government to the scheme is substantial, especially during these challenging economic times. This is demonstrated by the fact that in 2008, €413.7 million was paid out to farmers under the scheme. Of these, almost 17,600 farmers were paid by 31 December 2008 and about 17,400 payment claims now remain to be processed in 2009. In excess of 14,200 of these claims were received in the last month of operation of the scheme, December 2008.

All farmers who completed work in accordance with the terms and conditions of the scheme will be paid. This has been made clear on several previous occasions. Around 17,400 payment claims remain to be processed in 2009. Based on the average grant payment in the past, the cost of these claims is likely to be of the order of €550 million. Given the current economic and fiscal situation, the Government has decided, with little choice, that payment of outstanding grants under the scheme will be made on the basis of 40% in 2009, 40% in 2010 and the balance of 20% in 2011. Expeditious payment of the initial 40% in respect of approved claims will commence shortly.

To date the Government has contributed around €527 million in grant aid under this scheme to about 17,600 farmers. Further grant aid of around €550 million is envisaged over the coming years to the 17,400 farmers whose claims are being processed. This expenditure in excess of €1 billion represents a massive level of public support by any standards.

The current position with regard to applications under the scheme in County Waterford is as follows. In 2006, 67 payments totalling approximately €590,000 were made; in 2007, 116 payments totalling approximately €2.4 million were made; and in 2008, 225 payments totalling more than €6 million were made. By way of clarification, I point out that the 2006 figures would have included some expenditure under previous versions of the scheme. A total of 762 payment claims under the scheme remain to be processed by the Department's offices in County Waterford. This figure also includes claims in respect of farmers in south Kilkenny.